Invest in Yourself, First!
Well, this is a good thing…sort of. The Dow see-sawed back up another 430 points yesterday, meaning that we made up some ground. But, guess what. With a 9+ per cent unemployment rate, we’re still in a recession. So, here is our second part of the series. Let’s discuss investing. Below are the top 5 tips to investing during a recession! Let’s also keep in mind that nobody is actually recession proof!
1. Write down your strategy: Take 10 minutes to write down your investing strategy and why you hold each of your stocks, bonds, CD’s and mutual funds. Use that document as your pillar of strength if markets go bonkers.
2. Diversify: This does NOT mean investing in different mutual funds! Actually diversify. Choose stocks, bonds, funds, and commodities which ebb and flow at different times.
3. Choose Long Term Investments: If investing is not your business, leave the day trading to the professionals. Work with stocks that have proven success. This is not the time to test your market intuition, especially if you can’t afford to.
4. Be Careful, Internationally: Many finance advisees are talking about investing, globally. It’s a great idea. But, keep in mind the European banks are strongly tied to the US. And, the US, in general is a world power. So, just think about the investments that will be safe with or without an American market.
5. Invest in yourself, first: Now might be the time to look into more higher education, certificate programs, or even working on the infrastructure in your home. If you’re a business owner, you may want to think about some upgrades. With the market wobbling, you can look to save money on premium items. Before you look to invest in a company you have no control over, think about investing in YOU!
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Christopher Salute is a business professor at Molloy College. He is currently pursuing his PhD and is also a collegiate career counselor.
